FPHC buying back shares

MANILA, Philippines—Lopez-led First Philippine Holdings Corp. is buying back about P4.35 billion worth of preferred shares as part of its debt management strategy.

In a disclosure to the Philippine Stock Exchange Thursday, FPH said it had issued a notice of redemption of all outstanding series B preferred shares by April 30.

There are at present 43 million outstanding series B preferred shares. These were issued by the company in 2008.

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Trading of FPH preferred shares on the Philippine Stock Exchange will be suspended starting March 27 or about a month before the redemption.

FPH is exercising the option to redeem these shares with the intention of refinancing them with less expensive borrowings.

Redemption value is the sum of the issue value of the series B shares plus all cumulative dividends payable on the optional redemption date.

The company’s board earlier approved the redemption of the preferred shares and the payment of a cash dividend on these shares, consistent with FPH’s contractual obligations.

FPH is engaged in power generation and manufacturing operations. It is also into pipeline service, construction, sale of merchandise and real estate. Its subsidiaries and affiliates include First Gen Corp., Panay Electric Co. Inc., Manila Electric Co., First Philippine Industrial Corp. and Rockwell Land Corp.

The company’s consolidated net income reached P14.9 billion for the three quarters to September 2012, a substantial increase from the P2.5 billion a year ago.—Doris C. Dumlao